The adjusted trial balance of Patino Company for the year ended September 30, 2021 is as shown
Question:
The adjusted trial balance of Patino Company for the year ended September 30, 2021 is as shown below. It is prior to recording of income tax expense. All accounts are their normal balance (debit or credit). Patino has an income tax rate of 30%.
Accounts payable...............................................................................................................$ 80,000
Accounts receivable............................................................................................................. 40,000
Cash.................................................................................................................................... 50,000
Cash dividends declared........................................................................................................ 7,000
Common shares....................................................................................................................30,000
Cost of goods sold.............................................................................................................. 175,000
Dividends payable................................................................................................................. 4,000
Interest expense.................................................................................................................... 4,500
Inventory............................................................................................................................ 120,000
Operating expenses...............................................................................................................92,300
Preferred shares....................................................................................................................25,000
Retained earnings, beginning balance................................................................................. 11,900
Sales revenue..................................................................................................................... 320,000
Taxes payable.......................................................................................................................... 100
Instructions:
Prepare the income statement and statement of retained earnings for Patino Company for the year ended September 30, 2021.
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina